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LTB 327/24 - TERMS OF REFERENCE BETWEEN PARCELFORCE WORLDWIDE AND THE CWU ON A TRIAL OF A HYBRID REWARD MECHANISM/C&D DRIVER PRODUCTIVITY INCENTIVE SCHEME

No: 327/24


For the Immediate Attention of All:


Postal Branches

Parcelforce Regional Organisers

Parcelforce Representatives


Dear Colleagues,


TERMS OF REFERENCE BETWEEN PARCELFORCE WORLDWIDE AND THE CWU ON A TRIAL OF A HYBRID REWARD MECHANISM/C&D DRIVER PRODUCTIVITY INCENTIVE SCHEME


Attached for the information of Branches, Parcelforce Representatives and members is a Terms of Reference covering further trial activity on a Hybrid Reward Mechanism/C&D Driver Productivity Incentive Scheme.


Discussions have continued with the business to develop alternative options and resolve the issues which were prevalent during the previous trial and the learnings suggested a number of variations of an incentive scheme to test the optimal mechanism for rewarding performance in times of both higher and lower volume levels.


The revised scheme has a number of improvements:


  • These relate to an upgraded version of the Parcelforce Route Balancer tool (PRB) and firm guidelines for its use, to improve the accuracy of the Gateway figure and the item reward figure.

  • A reaffirmation of the commitment that internal routes should be fully utilised before traffic is assigned to external resource.

  • Improved information and pre-advice to ensure drivers are aware of the level of opportunity and the level of achievement each day. This will include consideration of a Depot Champion Role.


This scheme is not directly linked to the achievement of customer ETA (estimated time of arrival) windows, however there is an expectation all delivery and collection customer service levels need to be maintained in line with customer specification. 


Where there is any negative impact on quality performance in the participating depots it will be reviewed as a matter of urgency as part of the joint working group activity. This may include early withdrawal of depots from the trial where quality cannot be maintained.


The participating sites below have been selected to reflect the different depot types:


  • Gloucester (Cluster)

  • Leicester

  • London SW

  • London SE

  • Glasgow

  • Deeside


The individual route payment calculations will be checked by the Operations Manager at the end of the week and signed off by the Regional Operations Leader (ROL) to provide a robust audit trail for the incentive scheme payments.


Arrangements are being made with Parcelforce for a launch call early next week for Representatives from the participating sites to ensure that the scheme and the opportunities it will provide with regard to earning opportunities for our members are fully understood. It is anticipated the new scheme will be launched from Monday 14th October.


The department would request that Branches bring the contents of this LTB to the attention of our members in the trial sites and across the wider Parcelforce membership.


Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: sbanbury@cwu.org quoting reference LTB 327/24.


Yours sincerely


Davie Robertson                                                                    

Assistant Secretary









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